Ok I tried to draft a letter to point out issues with the...

Ok I tried to draft a letter to point out issues with the independent report in coming to the conclusion they have but I couldn't come up with a clear argument around them coming to an erroneous conclusion.

BDO valued SLR based on it's Sum-Of-Parts with inputs from SRK Consulting at a preferred value of 71c per share (which is patently ridiculous but useful). BDO used this as their cross reference point for their chosen primary method which was Quoted Market Price Method - ie prices traded on the ASX pre and post scheme. For SLR they used pre scheme trading with a preferred value of $1.15 per share (with top end of the range at $1.25 - less than the closing price before the announcement at $1.265). So they justified using the QMP value as it was easily supported by the Sum-of-Parts method which they had ample analysis done by themselves and SDK to support - pages and pages of it!

They then used the post scheme trading of RED 5 to provide the Scheme Consideration Value with a preferred value of 34.5c

Based on this the Scheme Consideration is 0.345c x 3.434 = $1.185 which is 3.5c above the SLR QMP value. So the deal is fair and reasonable.

There are many arguments that could be made but nothing that is going to blow it out of the water - just alternative views and calculations. For example the 0.345c is from share trading in Red 5 post scheme announcement when the POG was in the ascendancy and the SLR QMP value was pre scheme announcement, etc, etc, etc.

The report is pretty much incrompehensible for the layman and I am an Accountant with 20 years experience who had much trouble interpreting how they got to their conclusion so I expect that most shareholders will not be properly informed. It's just as well there is a big tick against "VOTE IN FAVOUR" on the front cover of the booklet to tell shareholders how to vote if they can even be bothered.

So the report achieves it's goal of covering the arses of our BOD whilst supporting the Scheme.

I will be voting AGAINST as the Scheme does not provide fair and reasonable consideration on my analysis.

Alternative simple QMP on last trades before the Scheme Announcement:

SLR share price was $1.265 closing price 2 Feb
RED share price was $0.33 closing price 2 Feb

Consideration $0.33 x 3.434 = $1.133 v $1.265 ( discount of 10.4%)

Anyway I am happy enough as I doubled my meagre holding back sub $1 after the scheme was announced. Wondering about my exit strategy post scheme vote, I don't think I will be long term holder.